The LED lighting industry is losing money but will continue to invest

In the latest issue of the Shenzhen Stock Exchange, the Chinese dream is practiced. Into the activities of listed companies, dozens of small and medium investors came to the Abisen headquarters in Longgang, Shenzhen. According to the data, Ai Bison's 2013 operating income was 730 million yuan. In 2014, sales orders continued to grow, and the cumulative sales orders exceeded 1 billion yuan. This broke the bottleneck of the LED display industry's sales orders over the past two decades. In the first three quarters of this year, Ai Biesen achieved an operating income of 710 million yuan and a net profit of 110 million yuan. In the first three quarters of this year, Abbison LED screen sales achieved a revenue of 104 million yuan in the domestic market, an increase of more than 50. Compared with why the development focus is not on the domestic market, Ding Yanhui said frankly: There is no confidence in the domestic business environment. Moreover, the international market potential is still very large, and in the case of limited time and energy, focus on the big overseas market. Ding Yanhui said that the company will continue to maintain a 20% share of the domestic market in the future. It is understood that Abbison is currently setting up overseas branches and offices to continue to expand overseas markets. Ding Yanhui said that in the future, it may consider mergers and acquisitions to restructure some companies with potential technology, and consider the layout in the industry chain. The company's short-term development strategy is to focus on indoor business photos, as well as to provide products to high-end customers and engineering customers in Europe and America. As for the plan after three years, Ding Yanhui said: Still waiting to see. At present, the competition in the domestic LED lighting industry has entered a stage of white-hot. In the harsh environment of market chaos, lack of standards and homogeneity of products, how to maintain its own advantages and stand firm, and become a concern of investors. Although the threshold for entering the industry is very low, the requirements for this technology are very high and it is very difficult to do. It is not possible to do a good display. Since last year, a large number of companies have closed their doors, especially the medium-sized companies have encountered challenges in their living environment. Ding Yanhui said that the LED display will only go higher and higher in the future. Next will be the competition of real swords, the company's ABC level will be divided. At present, LED lighting is basically a state of loss in the whole industry, but we will continue to invest, focus on doing our own brand, and resolutely oppose the price war. Ding Yanhui said. The Abbison prospectus shows that in July 2010, the company introduced a zero down payment sales policy for some customers mainly for standardized products, that is, customers do not need to pay the advance payment when placing the order, and all the payment or most of the payment is paid before delivery. At present, Abbyson has implemented a zero down payment policy in two star products, A1088 and A1688, and three small pitch products, A2, A3pro and AI03. After the above policies were introduced, the industry was in turmoil. Many people have questioned how to control the risk if the customer sells the goods without a deposit. Ai Bisen believes that because the LED display is a customized product, the customer can't see the real thing, and he is worried that the physical object received will not achieve the desired effect. It is the understanding of the customer's concern and the foundation of his own strength. Zero down payment is an initiative that challenges traditional rules. The results were unexpected, especially for overseas customers, who agreed with Abbison’s approach. However, zero down payment also brings huge accounts receivable and inventory risks. In this regard, Ding Yanhui said that the company's accounts receivable in 2013 was about 100 million yuan, and the profit was also about 100 million yuan, basically achieving zero inventory. At the same time, accounts receivable are all guaranteed by China Export Credit Insurance. There have also been cases of customer bankruptcy before, all of which are compensated by insurance companies, so this innovative business model is safe. Whether to cooperate with e-commerce to develop Internet business. Ding Yanhui said that the company set up the Ministry of Information Technology very early and is studying the use of the Internet to develop business, but the company will not particularly emphasize the role of the Internet. Although the Internet is a good tool, it can sell products on the Internet but not products. Ding Yanhui said.

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